Ethereum Heading for a Big Drop
Peter Brandt warns that there is currently no buy signal for Ethereum (ETH). He has pointed out a bearish rising wedge pattern forming on the 4-hour chart, which often leads to significant price declines. Brandt believes that:
- The chart still appears bearish.
- A downside target of $1,551 has not been reached yet.
However, he acknowledges the challenge in predicting whether these patterns will unfold as expected, noting that outcomes often differ from forecasts.
As of now, ETH is trading around $2,505, reflecting a 5.3% drop in the last 24 hours. Notably, the 24-hour trading volume has increased by 3%, indicating growing trader interest, although open interest has dropped by 1.85% in the past four hours.
20% Possible Drop Ahead?
In addition to Brandt’s analysis, well-known crypto analyst Michael van de Poppe shared his views on Ethereum (ETH). He remarked that:
- The current chart for ETH appears tricky.
- If the downtrend continues, a potential drop of 10% to 20% could occur.
Despite the bearish outlook, van de Poppe remains optimistic about a possible turnaround. He highlights the importance of upcoming economic data, particularly the unemployment numbers set to be released today.
Ethereum Price Analysis
Despite the prevailing bearish sentiment, Ethereum’s technical analysis reveals some positive signs. An ascending trendline indicates the possibility of a retest of the $2,550 to $2,600 range. The daily chart also shows an ascending triangle, suggesting a potential bullish outlook.
The next key target for Ethereum is $2,800, with ETH aiming to surpass the 100-day and 200-day EMAs, which would bolster its bullish momentum. Key indicators include:
- The RSI is above 50, indicating buyer control without overbought conditions.
- Narrowing Bollinger Bands suggest reduced volatility.
However, if ETH closes above $2,800, volatility could increase rapidly, setting the stage for ETH to reach the $3,000 mark soon.
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